Social Good (September 2011)

SOCIALGOOD SEPTEMBER 2011

WHAT WE‘LL COVERBackground and MethodologyThe End of GoodwashingThe Rise of Shared ValueCreative Urban RenewalRipping a Page from the For-Profit PlaybookThe Global Do-Good GenerationThings to Watch:• Buy One, Give One Away• Gaming for Social Good• Beyond Slacktivism: Incentivizing Online Engagement• Donation Channel InnovationCase Studies SOCIAL GOOD

METHODOLOGYJWT‘s ―Social Good‖ report is the result of quantitative, qualitative and deskresearch conducted by JWTIntelligence in partnership with EthosJWT, a unitspecializing in brand strategy, ideas and activation for social change and societalbenefit.JWTIntelligence and EthosJWT interviewed experts and influencers from thenonprofit and corporate social responsibility sectors and conducted quantitativesurveys in the U.S., the U.K. and Canada. The surveys used SONAR™, JWT‘sproprietary online tool, to poll 908 adults aged 18-plus from June 28-July 6, 2011. SOCIAL GOOD

INFLUENCERS/EXPERTS SOCIAL GOOD

THE END OFGOODWASHING

TRENDCynical and savvy, today‘s consumers expect greater accountability from nonprofitsas well as brands involved in cause marketing—e.g., exactly where the money isgoing and what impact it‘s having. More transparency will mean more focus oneffecting real change and less ―goodwashing.‖ THE END OF GOODWASHING

DRIVERS• Consumer cynicism• Expectation of radical transparency• Reading the fine print• Social media ―Brands are becoming far• Competitive and more discerning about who to government pressures cooperate with in terms of institutions. Madonna had a problem• More monitoring with her charity, and so did Oprah. So organizations and before brands step in to sponsor a watchdogs charity, it has to have impeccable credentials, have substance.‖• Digitally enabled advocacy —MILTON PEDRAZA, CEO, Luxury Institute groups THE END OF GOODWASHING

DRIVERS (cont‘d.)• Consumer cynicism• Expectation of radical transparency• Reading the fine print• Social media• Competitive and government pressures• More monitoring organizations and watchdogs• Digitally enabled advocacy groups THE END OF GOODWASHING

DRIVERS (cont‘d.)• Consumer cynicism• Expectation of radical transparency• Reading the fine print• Social media ―My sense is that, with the younger• Competitive and generation, if they cannot read things about your company on the government pressures Web, you have very little credibility• More monitoring in their eyes. … It is almost like they organizations and do not believe you unless they can read it for themselves and get watchdogs comfort that someone out there has• Digitally enabled advocacy blogged or given the issue the ‗Like‘/thumbs up.‖ groups —TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc. THE END OF GOODWASHING

DRIVERS (cont‘d.) Facebook, Twitter and other social platforms• Consumer cynicism have made it easy for anyone to become an agent of social change. With a quick click,• Expectation of radical activists, watchdogs, thought leaders and transparency average Joes can disseminate their perspective to the masses, bringing varied points of view• Reading the fine print to light and limiting an organization‘s ability to gloss over less flattering facts.• Social media• Competitive and ―We are being pushed by socially government pressures responsible investors and other stakeholders to measure the ‗impact‘ or• More monitoring ‗outcomes‘ of our social/community organizations and programs. I think this will be a big area watchdogs of interest and focus in the next few years.‖• Digitally enabled advocacy —TIM FAVERI, director, sustainability and groups responsibility, Tim Hortons, Inc. THE END OF GOODWASHING

DRIVERS (cont‘d.)• Consumer cynicism Third-party organizations are making it easier for people to find out more about individual• Expectation of radical charities and how they stack up. transparency• Reading the fine print Digital media is helping advocacy groups reach a broader audience with messages about• Social media avoiding brands that use offending ingredients, unsavory labor practices and so on. With so• Competitive and much information out there, these groups help government pressures simplify issues for consumers while pushing corporations to keep it clean.• More monitoring organizations and watchdogs• Digitally enabled advocacy groups THE END OF GOODWASHING

MANIFESTATIONS: MORE (AND EASIER-TO-DIGEST) LABELING AND REPORTINGImage credits: apple.com/environment; Patagonia.com/footprint; starbucks.com/responsibility THE END OF GOODWASHING

BENEFIT CORPORATIONS TAKING A MANIFESTATIONS: HOLISTIC APPROACH TO SOCIAL GOOD ―The answer is not to play ‗gotcha‘ at the back end. The answer is getting in front of the problem and preventing situations in the first instance.‖ —TIM DELANEY, president, National Council of Nonprofits, ―Can You Know Where Your Charity Dollars Go? Not Easily,‖ npr.org, May 6, 2011Image credits: Bcorporation.net THE END OF GOODWASHING

SIGNIFICANCE/RELEVANCEIt‘s no longer enough to simply claim virtuous actions after some token efforts. Asconsumers learn all they ever wanted to know about the impact of their donations,volunteer efforts and cause-related purchases, brands and philanthropic organizationswill need to ensure their credentials are up to the scrutiny. This goes for internaloperations as well as partnerships. Better to acknowledge flaws in CSR programs andbusiness operations—along with plans on how these issues will be addressed—than tobe found out by watchdogs or engaged individuals and have reputations smearedacross the media. THE END OF GOODWASHING

POTENTIALWith consumers on high alert, claims must be solid: Consumers will see through―goodwashing‖ and similar practices. And transparency is essential too. It‘s likelythat simply being open will matter more to consumers than the specific informationrevealed.As more corporations spell out their CSR credentials and nonprofits more clearlyillustrate their mission, it will become increasingly important to practice VisualFluency—that is, convey complex information in an easily digestible way. People intoday‘s attention-scarce economy prefer a graphic synthesis of information to anavalanche of data and reading material.Watch for more businesses to follow the lead of companies like Best Buy, which isopening up a two-way dialogue about its CSR reporting; Patagonia, which divulgesthe shortcomings of its products in addition to their green credentials; andStarbucks, which lets consumers easily check the company‘s progress toward self-imposed CSR goals. Such efforts will help companies differentiate themselves fromthe cacophony of CSR messaging. THE END OF GOODWASHING

POTENTIAL (cont‘d.)Meanwhile, brands with the cleanest credentials can ramp up efforts to educateconsumers about why they should care and apply competitive pressure onorganizations that have been slow to adopt the ―Do no evil‖ creed or are stillpracticing old-school philanthropy.Brands that don‘t become more responsible for their social impact and act moresustainably will lose ground. THE END OF GOODWASHING

THE RISE OFSHARED VALUE

TRENDRather than simply doling out checks to good causes, some corporations arestarting to shift their business models, integrating social issues into their corestrategies. The aim is to create shared value, a concept that reflects the growingbelief that generating a profit and achieving social progress are not mutuallyexclusive goals. By reconsidering products and target demographics, forgingpartnerships with local groups and improving productivity in the value chain,companies can become a force for positive change while enhancing their long-termcompetitiveness. THE RISE OF SHARED VALUE

TREND (cont‘d.) ―The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and economic progress.‖—MICHAEL E. PORTER and MARK R. KRAMER, ―Creating Shared Value: How to reinvent capitalism—and unleash a wave of innovation and growth,‖ Harvard Business Review, January–February 2011 ―We have observed that companies that choose to take on a more proactive approach in the form of ‗social innovation‘ are capturing much greater competitive advantage. This competitive advantage is rooted in an ability to create new products and services that deliver social and environmental impact alongside financial impact, gain access to new markets, engage and retain their internal talent, as well as build brand differentiation in the market.‖ — CHARMIAN LOVE, chief executive of social innovation consultancy Volans THE RISE OF SHARED VALUE

DRIVERS As businesses seek new sources of revenue in• New opportunities in emerging markets, they are coming to see emerging markets that they can generate opportunities for growth if they help to address some of the endemic problems they find (for example, by• Pressure to cut costs and creating relevant products and services and carbon emissions investing in sustainable manufacturing processes). In Africa, for example, where an• Blurring lines between estimated 560 million people live without business, nonprofits and electricity, new solar-powered technologies offer a cheap way to provide families with government lighting.• Looming resource shortages Companies are developing more sustainable, low-cost manufacturing and transport• Consumer expectations practices as they seek ways to both reduce costs and fall in line with pressures to cut• The Millennial outlook carbon emissions. These practices, and others focused on stewarding natural resources, can be both economical and effective, cutting pollution and improving local living conditions. THE RISE OF SHARED VALUE

DRIVERS (cont‘d.) ―We‘ll see … a growing recognition (at least among the most progressive• New opportunities in companies) of the opportunities emerging markets associated with sustainability and a greater commitment to creating• Pressure to cut costs and ‗shared value‘ for business and carbon emissions society. In terms of implementation,• Blurring lines between partnerships are often essential because of the complex nature of the business, nonprofits and challenges being addressed.‖ government —VANESSA EDWARDS, head of corporate• Looming resource shortages responsibility, WPP• Consumer expectations In today‘s globalized environment, demand for resources is growing exponentially, and• The Millennial outlook experts are sounding warnings about looming shortages. Corporations are trying to ensure the long-term viability of key resources by improving living conditions and providing communities with new, more sustainable technologies. THE RISE OF SHARED VALUE

DRIVERS (cont‘d.)• New opportunities in emerging markets• Pressure to cut costs and carbon emissions• Blurring lines between business, nonprofits and government• Looming resource shortages• Consumer expectations• The Millennial outlook THE RISE OF SHARED VALUE

MANIFESTATIONS: RECONCEIVING PRODUCTS TO ADDRESS SOCIAL ISSUES Campbell’s Nourish: Distributed in Canadian groceries, Nourish is a single-serving can of soup designed to provide a complete daily serving of three key food groups at a low cost. Campbell‘s considers the product both a commercial opportunity and a way to address hunger and food security issues. Campbell‘s has developed partnerships with nonprofits such as the World Food Programme and local governments, and is considering rolling out Nourish in other markets. GE’s Vscan: GE started selling this smartphone-sized imaging tool, which brings ultrasound technology to Philips’ “Sustainable Energy Solutions for physicians‘ pockets, in 2010. The Africa”: As part of this solar-focused effort, device has an hour‘s worth of battery Philips is partnering with the Dutch government in life, allowing medics to diagnose a bid to provide affordable, sustainable energy patients in the field—most notably in solutions to some 10 million people across 10 sub- crisis zones where access to power is Saharan African nations by 2015. A cheap, limited—and along bedsides. lightweight solar reading light is designed to help children complete their homework at night or allow people to read in the evening.Image credits: lighting.philips.com; Vscan Primary Care Online Brochure; youtube.com/CampellSoupCanada THE RISE OF SHARED VALUE

MANIFESTATIONS: RECONCEIVING SUPPLY CHAINS Marks & Spencer, “Plan A”: The British retailer Marks & Spencer has committed to the lofty goal of becoming the world‘s most sustainable major retailer by 2015. The company reported that in 2010/2011, this ongoing initiative contributed to a net benefit of £70 million for M&S. Among other strategies, the retailer switched its delivery fleet to 50% bio-diesel fuel and implemented a ―‗green‘ business travel policy to reduce CO2 emissions caused‖ by travel. It is currently upgrading its refrigeration systems in stores, leading to a reduction in greenhouse gas emissions. Walmart’s fuel-efficient trucks: Walmart is working to double its truck efficiency by 2015 (based on a 2005 baseline), switching to fuel-efficient tires, recalibrating engines and adding aerodynamic elements to truck carriages. It has also replaced two-thirds of its nearly 7,000-truck fleet with fuel- efficient tractors and used detailed analysis to shorten its route network, by 49 million miles. In 2010, these initiatives helped the company cut its fuel costs and save almost 40,000 metric tons of CO2 emissions.Image credits: plana.marksandspencer.com; Walmart Stores THE RISE OF SHARED VALUE

SIGNIFICANCE/RELEVANCEBy putting shared value at the center of their strategy, brands can benefit theirbusiness, their customers and society in general. Companies should identify needs anddevelop products, services and/or processes to meet them; invest in the charitable,nonprofit and/or NGO space; and seek ways to reduce fuel consumption, whichreduces costs and emissions.In the long term, these strategies can expand companies‘ market presence, insulatethem from shocks in the supply chain and improve the way they are perceived byconsumers. THE RISE OF SHARED VALUE

POTENTIALThere are more than 3 billion low-income consumers worldwide, according toestimates by Nestlé, and as global population growth explodes, this number is set tospike. By creating products and services to meet the needs of this segment, brandshave a huge opportunity to expand outside developed markets. And by investing inemerging markets, brands can create a virtuous circle, where employed locals becomeaspiring middle-class consumers.Brands can innovate by scaling down existing offerings into lower-priced versions. GE‘stwo-year-old Healthymagination project, for instance, which aims to lower the cost ofhealth care, has already birthed several economical devices. One example: The BrivoDR-F, a digital X-ray machine with a space-saving design, costs 30% less than premiumsystems and is also more energy efficient than typical film-imaging systems. THE RISE OF SHARED VALUE

POTENTIAL (cont‘d.)Brands should consider how to best educate shareholders about the potential of thesekinds of ventures. This can be done by emphasizing the importance of a long-termbusiness strategy, highlighting learnings about new areas for product development andmaking incremental changes to corporate practices. At the same time, expect a newgroup of shared value auditors, which will develop new metrics that assess companies‘performances in terms of social impact and shared value generated. ―Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking.‖ —MICHAEL E. PORTER and MARK R. KRAMER, ―Creating Shared Value: How to reinvent capitalism— and unleash a wave of innovation and growth,‖ Harvard Business Review, January–February 2011 THE RISE OF SHARED VALUE

CREATIVE URBANRENEWAL

TRENDHuman environments will become increasingly important as the global populationbecomes more urbanized over the next few decades and cities boom. Brands willbecome key partners in enabling creative strategies for urban renewal—improvinglocal environments, adding beauty or helping to bring communities together. CREATIVE URBAN RENEWAL

DRIVERS With cities booming, there‘s never been a more• Fastest urban boom in pressing need to rethink them. history In the developing world, people are drawn to new opportunities in urban centers, which are• Government stagnation and adding an average of 5 million people per lack of funding month, according to UN-HABITAT. In Asia, Foreign Policy estimates, about half the• Empty retail space population (1 billion people) will migrate from the countryside to urban centers by 2030.• Environmental concerns Meanwhile, the U.S. is seeing ―bright flight,‖ with younger, educated Americans reversing the• DIY ethic trend among their parents and grandparents to leave cities for the suburbs; among first-time• ―We vs. me‖ mind-set home buyers, 77% say they want to live in urban areas.• Brand involvement in community is expected CREATIVE URBAN RENEWAL

DRIVERS (cont‘d.)• Fastest urban boom in history• Government stagnation and lack of funding• Empty retail space• Environmental concerns• DIY ethic• ―We vs. me‖ mind-set• Brand involvement in community is expected CREATIVE URBAN RENEWAL

DRIVERS (cont‘d.) ―The whole idea of dead retail space is• Fastest urban boom in pretty prevalent in the downturn. Artists used to go in and take over history warehouse spaces. Now warehouse• Government stagnation and spaces—at least in cities—are often expensive. So maybe the next move is lack of funding to take over some of these huge areas• Empty retail space of strip malls that are so inexpensive or dead malls and create art studios. …• Environmental concerns A lot of what happens in art these days is about appropriation, so if there was• DIY ethic a way to rethink junk space and let the community use that, without too much• ―We vs. me‖ mind-set money or intervention, [brands] could create an interesting place for [people]• Brand involvement in to go that‘s sort of the anti-mall.‖ — community is expected David Belt, executive director and founder of Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projects CREATIVE URBAN RENEWAL

DRIVERS (cont‘d.) Public awareness surrounding environmental• Fastest urban boom in degradation is leading many to rethink urban history spaces.• Government stagnation and lack of funding• Empty retail space• Environmental concerns• DIY ethic• ―We vs. me‖ mind-set• Brand involvement in community is expected CREATIVE URBAN RENEWAL

DRIVERS (cont‘d.) There‘s a growing belief in collectively driven• Fastest urban boom in positive change, both among professionals (designers and architects, developers, urban history planners, etc.) and everyday folk driven to better their environs.• Government stagnation and lack of funding• Empty retail space• Environmental concerns• DIY ethic• ―We vs. me‖ mind-set• Brand involvement in community is expected CREATIVE URBAN RENEWAL

MANIFESTATIONS: CREATIVITY BUBBLING UPImage Credits: youtube.com/firmezatotalfilm; Antonia Wagner; inchernet.com; greenaid.co CREATIVE URBAN RENEWAL

MANIFESTATIONS: TECHIE URBANITES LEVERAGING DATA ―I believe this massive amount of data that‘s being generated can be used to better design cities, to build better disease surveillance models, to do things that ultimately are going to improve the lives of billions of people.‖ —NATHAN EAGLE, founder and CEO, txteagle, which creates opportunities for mobile subscribers in the developing world to generate income via their phonesImage Credits: roadify.com; youtube.com/localprojects; seeclickfix.com CREATIVE URBAN RENEWAL

MANIFESTATIONS: BRANDS SUPPORTING URBAN RENEWALImage Credits: bizcommunity.com; Zolk CREATIVE URBAN RENEWAL

MANIFESTATIONS: BRANDS SUPPORTING URBAN RENEWAL (cont‘d.)Image Credits: youtube.com/letcolour; youtube.com/KiaCanada CREATIVE URBAN RENEWAL

MANIFESTATIONS: BRANDS SUPPORTING URBAN RENEWAL (cont‘d.)Image Credit: prnewswire.com; youtube.com/LevisReadyToWork CREATIVE URBAN RENEWAL

MANIFESTATIONS: GIVING NEW LIFE TO DEAD SPACE ―Just to put [your brand‘s] name on a banner isn‘t so interesting, but to take a leadership role where they‘re raising money for a community garden or where they‘re providing a creative space for people to interact with—that‘s pretty empowering, because it gives people the tools. ―I feel [brands] don‘t have to accommodate that many people in order to have a tremendous impact and influence and get a pretty big bang for their buck, because if they have the right people in there, the word really gets out and the ripple effect is felt.‖ —DAVID BELT, executive director and founder of Macro Sea, a development firm that uses everyday objects to create unexpected interactive urban projectsImage Credit: wastedspaces.org; iwishthiswas.cc CREATIVE URBAN RENEWAL

MANIFESTATIONS: CORONA‘S ―SAVE THE BEACH‖ PROJECTImage Credit: jwt.com CREATIVE URBAN RENEWAL

SIGNIFICANCE/RELEVANCEBrands will be key partners in enabling creative strategies for renewal, taking localCSR initiatives to the next level. Brands can show their creativity, innovative spiritand community-mindedness by tapping into the ―urban hack‖ mind-set. CREATIVE URBAN RENEWAL

POTENTIALAt a time when CSR and more traditional marketing efforts are meshing, creativeurban renewal projects present ways for brands to both helpcommunities/neighborhoods and craft an image as innovative, original and cool.These projects tend to be sustainable, fun, educational and interactive—keyareas/attributes for brands. CREATIVE URBAN RENEWAL

POTENTIAL (cont‘d.)With today‘s ―we vs. me‖ mind-set and DIY ethos, there is ample opportunity forbrands to partner with professionals, residents and nonprofits to spearheadinnovative ideas and solutions. By creating opportunities for active participation inthe revitalization of a space, brands can further generate goodwill by givingcitizens a sense of ownership over the project and pride in their achievements.Large corporations can also leverage their economic weight on behalf ofcommunities and side with citizens to spur local government action.The efforts must be substantial: This movement has roots in anti-consumeristnotions, and skeptical consumers will quickly smell empty gestures. CREATIVE URBAN RENEWAL

POTENTIAL (cont‘d.) ―Unfortunately, we‘re still in the phase of insincerity. The next evolution of this is when some of those companies actually say, ‗Look, we need to do this because it makes great business sense for us, because it creates a meaningful environment in which to be employed.‘ The more we push on creating change and improving quality of life for people through what we do best, which istechnologies and business models and investments, the more comes to us. And the more that comes to us, the more we can reinvest. And itcreates an acceleration of not only our business ethic and our business model and our business, but also it starts to have real tangible, measurable impacts on people.‖ —STEVE LEWIS, CEO and co-founder, Living PlanIT, which builds large integrated technology platforms for managing city operations CREATIVE URBAN RENEWAL

RIPPING A PAGE FROM THEFOR-PROFIT PLAYBOOK

TREND Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect, measurable results and return on investment. In the next few years, CSR and social change initiatives will evolve ―fromtraditional development models of aid provided with an undetermined end- game for sustainability to a business-plan approach with a quantifiable baseline, benchmarks, outcomes and timeline for sustainability.‖ —WALKER MORRIS, Malawi country executive, Clinton Foundation RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

DRIVERS With more organizations vying for less money, nonprofits need impressive numbers to get the attention of donors and show why they‘re the better investment. Since private donations, grants and government funding often carry stipulations as to how they can be used, nonprofits are• A race for funding increasingly looking for ways to develop their autonomy. By creating steady self-generated• Desire for self-sufficiency revenue streams, they gain the flexibility and security needed to allocate funds as they see• Donor insistence on results fit. Today‘s well-informed consumers expect total transparency from the nonprofits they support: They want to know not only how funds are spent but also exactly what kind of impact those funds are making. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

MANIFESTATIONS: SURGE IN PUBLIC-PRIVATE PARTNERSHIPS Walmart and Treasure Coast Food Bank: In 2009, Florida- based Treasure Coast Food Bank leveraged Walmart‘s famed logistical expertise to determine how to deliver more meals each week with their existing resources. Members of the Walmart distribution team helped the food bank build its warehousing capabilities, improve storage and more rapidly sort food; they also developed new truck routes to facilitate more frequent food deliveries. The food bank was able to increase its culinary partners from 140 to 200 and doubled the number of meals it serves weekly. IBM and Turkish nonprofit Toplum Gönüllüleri Vakfı: In Turkey, IBM volunteers partnered with the educational nonprofit Toplum Gönüllüleri Vakfı (Community Volunteers Foundation), using the company‘s ―Share project management skills‖ solution to help develop and teach a children‘s literacy program. This and similar efforts are coordinated via IBM‘s On Micro-volunteering: A new crop of organizations connects Demand Community portal, which allows IBM volunteers to skilled volunteers with nonprofits in need of relevant services, combine their skills and IBM‘s technology. Since its 2003 such as logo design, accounting help or membership launch, 170,000 IBM employees have logged more than 12 development strategies. Examples include Catchafire and million hours of volunteer service via the site. Sparked, both for-profits, and the nonprofit Taproot Foundation.Image credits: facebook.com/walmart; stophunger.org; sparked.com; tog.org.tr RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

MANIFESTATIONS: SURGE IN PUBLIC-PRIVATE PARTNERSHIPS HP and mothers2mothers: As part of a new partnership with mothers2mothers—a South African group that works to prevent HIV-positive mothers from transmitting the virus to their children—HP is using its database, cloud and mobile technologies to digitize the organization‘s patient records. This will allow mothers2mothers to share patient information across regions, helping counselors provide better education and support services, and eventually enable staff to collect and share basic data via mobile phones.Image credits: m2m.org RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

MANIFESTATIONS: SURGE IN SOCIAL ENTERPRISES Me to We: Harnessing for-profit strategies to achieve socially Breadpig: This organization sells products such as magnets, responsible objectives, this retailer was launched by the clothing and posters at a profit then donates the proceeds to founders of Free the Children with the sole purpose of creating its nonprofit ―allies,‖ which include Room to Read and the San a steady revenue stream for the charity. It sells Francisco SPCA. One of its objectives is to forge long-term environmentally friendly and socially conscious apparel, self- relationships that include collaborative projects. Since it was empowerment books and music, and also coordinates founded in 2008, Breadpig has raised and donated more than adventure travel trips, donating half the profits to Free the $186,000. Children and investing the other half back into the business. In 2010, Me to We donated $1 million in cash and in-kind contributions.Image credits: metowe.com; youtube.com/MeToWe; breadpig.com RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

MANIFESTATIONS: VENTURE PHILANTHROPY FUNDS Acumen Fund: Acumen provides loans or equity—but not grants—that typically range from $300,000 to $2.5 million, describing this funding as ―patient capital.‖ To be eligible for support, organizations must provide low-income consumers with access to water, health care, housing, agricultural inputs or alternative energy. In 2007, for example, Acumen invested in Jamii Bora, a Kenyan microfinance organization that supported the construction of 750 low-income homes outside Nairobi; the organization repaid in full by 2010.Image credit: acumenfund.org RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

SIGNIFICANCE/RELEVANCENonprofits and other socially focused efforts will need more than good intentions tostay viable as supporters seek measurable change. Indeed, with the rise of socialenterprises such as Me to We and Breadpig, we‘ll see a more open-minded attitudetoward the means that organizations use to achieve their ends, as long as that meansreal-world impact. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

POTENTIALWe‘ll see more partnerships and collaborations between for- and nonprofits,allowing charities to leverage considerable resources. Organizations can evenoutsource the implementation of a project while handling the rest of theresponsibilities. ColaLife, for example, turned to Coca-Cola to help in its mission todeliver hydration packs to impoverished communities in developing countries, sincethe company has one of the world‘s most advanced distribution networks. ColaLifemanufactures the packs and prepares them for shipping, while Coca-Cola aids thecause by providing access to its distribution network; the scheme is being tested inZambia.Such relationships offer benefits to both parties: brands can earn CSR points (at arelatively low cost, in some cases), while nonprofits become more efficient andeffective. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK

THE GLOBAL DO-GOODGENERATION

WHO ARE THE MILLENNIALS?Millennials strive to be active and engaged in their world. A globally minded cohort,they‘re already taking on today‘s biggest issues, tackling them with anentrepreneurial mind-set, a ―we vs. me‖ mentality, a belief in large-scalecollaboration and an optimistic, can-do spirit.This generation—born between 1978 and 2000—is uniquely motivated to make adifference: They want to improve society but without compromising personalaspirations; do good, the thinking goes, and the personal benefits will follow. Andas so-called digital natives, they‘re uniquely equipped to make a difference: Theyhave the tech savvy to create innovative solutions and to organize on a scale neverbefore possible. And then there‘s the sheer size of this generation: some 78 millionindividuals in the U.S. alone.―For the generation coming up now, there is a much stronger optimism and a much bigger desire to do well while also doing good.‖ —ALEXIS OHANIAN, co-founder of Reddit and founder of Breadpig, a U.S.-based social enterprise that sells geeky products and donates the profits to nonprofit organizations THE GLOBAL DO-GOOD GENERATION

THE FIRST ―GLOBAL GENERATION‖ Another key factor is that they‘re the first ―global generation,‖ with more overlapping values and shared experiences than any before them, thanks to globalization and the communication technology revolution. They are more likely than their elders to identify with and embrace people and cultures beyond their own borders.Image credits: tigweb.org THE GLOBAL DO-GOOD GENERATION

TECHNOLOGY-ENABLED ACTIVISTS Technology enables young people to swap ideas, connect with like-minded individuals across borders and organize events. And social media helps to push social causes into the mainstream of Millennial consciousness: ―Liking‖ a cause on Facebook or tweeting about injustice helps define who you are and what you believe in. (Although the verdict is still out as to whether this ―activism-light‖ translates into any meaningful real-world change.) There are even social networks based around the idea of social good, like TakingITGlobal, which has more than 340,000 members working in nonprofits worldwide, and KooDooZ.com, a kids network. Nearly nine in 10 Millennials we surveyed acknowledged that they have the communication tools to make a huge difference in the world.Image credit: causes.com THE GLOBAL DO-GOOD GENERATION

MARKETING SOCIAL GOOD TO MILLENNIALSMarketers can tap into this spirit by creating movements around their CSR effortsand calling on Millennials for ideas. Brands and philanthropic organizations shouldenable these hands-on consumers to show passion for and engagement with therelevant cause or campaign. This means giving up a certain measure of control,letting local groups organize and create excitement, or outsourcing tasks. EmpowerMillennials with tools for involvement in a cause, helping them to spread theirengagement by incentivizing social media posts. ―[Doing good] has become part of the Millennial DNA, and this generation is the driving force behind social change initiatives. Smartbrands have recognized this and have started to tap into the power ofthis generation and the power of social change mapped to their brand identity as an important part of their business model and profits.‖ —KRISTINE SHINE, vice president, PopSugar Media THE GLOBAL DO-GOOD GENERATION

THE GLOBAL DO-GOOD GENERATION THE GLOBAL DO-GOOD GENERATION

THINGS TO WATCHIN SOCIAL GOOD

THINGS TO WATCH: BUY ONE, GIVE ONE AWAYImage credits: sirrichards.com; betterworldbooks.com; warbyparker.com THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: GAMING FOR SOCIAL GOOD Philanthropic organizations are increasingly using gaming mechanics as a way to engage people in a cause and build communities of like-minded supporters. This is a manifestation of one of our 10 Trends for 2011, All the Tearfund: This platform, which provides financial and World‘s a Game. developmental support to impoverished communities in the developing world, is developing a game-based smartphone app in an attempt to engage more young people. The platform will Game-based schemes offer an reward supporters for their involvement and allow them to inventive way to drive donations and share this with other users via social networking tools. The aim is to make engaging with the U.K.-based charity more improve long-term commitment to a interesting and enjoyable, and help build long-lasting relationships with supporters. cause, making participation more interactive and rewarding. More than 4 in 10 of our survey respondents said a rewards-based mechanism is a good way to get people involved in a cause.Image credit: tearfund.org THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: GAMING FOR SOCIAL GOOD (cont‘d.) Gamification also enables people to view their standing in real time and compare this with peers‘. In broadcasting their behaviors online, people are consciously or unconsciously engaging in social one- upmanship—―I‘m more witty, worldly, in-the-know, on-the-go, etc., than you.‖ This is particularly the case with the hyper-social Millennials. THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: GAMING FOR SOCIAL GOOD (cont‘d.) AOK: Founded in early 2011, AOK is a platform that aims to Playtogive: This enterprise provides nonprofits with a platform increase acts and observations of kindness through competitive to create online games. Players can highlight in-game elements such as scoring systems, leader boards and real-world accomplishments and solicit sponsorship from friends. The rewards. Every time participants perform a good deed website displays individuals‘ scores and allows them to share (anything from lending a car to a friend to donating old these with their social graph. Players who garner the most clothes), they create a log of it using their smartphone and donations or sponsors are nominated as ―All Stars‖ and ranked upload it to AOK with pictures and descriptions. To challenge on the site‘s ―Champions‖ page. users to check on each other, players also get points for observing and reporting acts of kindness. AOK converts points into real-world donations to charities, and players have chances to win brand-sponsored prizes along the way. Users have a tally that updates in real time, and they‘re encouraged to compare it with others. ―People really like that their efforts are getting rewarded instantly, so what we are hoping to do is provide people with an incentive in the form of gaming that literally translates into an impact immediately.‖ —IRA LISS, CEO, AOKImage credits: aok.tv; playtogive.com THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: GAMING FOR SOCIAL GOOD (cont‘d.) DailyFeats: Another points-based system for social good, Web- Conspiracy for Good: Nokia sponsored this real-life game that based DailyFeats partners with brands to offer coupons and incorporated the company‘s augmented reality software in other incentives to participants (currently, more than 129,000 partnership with the organization Room to Read, which tackles local discounts and rewards are available in North America). As illiteracy in Africa and Asia. As part of the game, conducted in with AOK, participants can tag or categorize their ―feats,‖ then spring 2010, participants played activists and supporters of a upload them to the DailyFeats social graph. Marketers can secret organization called Conspiracy for Good, completing create promotions tailored to specific actions. For example, in tasks using Nokia smartphones and other devices. Nokia August, as part of an anti-bullying campaign, MTV encouraged reported more than 900,000 worldwide downloads of the people to be more inclusive and supportive by offering points game‘s app and a community of more than 4,000 dedicated for anti-bullying actions (such as standing up to bullies); the users. At the culmination of the game, five libraries were more points players accumulated, the closer they came to established in Zambia and 50 girls were provided with one year wining prizes, such as an invitation to MTV‘s Video Music of schooling. Awards.Image credits: dailyfeats.com/partner/mtv; conversations.nokia.com/ THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: BEYOND SLACKTIVISM: INCENTIVIZING ONLINE ENGAGEMENTImage credits: Dosomething.org; jcp.cf.cdn.virtue.com/afterschool; trojanvideos.com/help_donate THINGS TO WATCH IN SOCIAL GOOD

THINGS TO WATCH: DONATION CHANNEL INNOVATION: MOBILE QR code donations: Smart nonprofits and brands are taking advantage of QR codes to encourage donations—for example, Macy‘s partnership with DoSomething.org . In pedestrian-heavy New York, the local nonprofit City Harvest places QR codes on phone booth and bus shelter billboards. The code brings interested passersby to a simple page featuring videos explaining SMS donations: Back in 2004, following the Asian tsunami, U.S. ―how City Harvest helps feed hungry mobile users generated $200,000 through text-based donations. New Yorkers‖ and other aspects of In the seven years since, this channel has become mainstream, their work, with links to donate with the Red Cross pulling in $4.5 million from text donations online or over the phone. in response to the earthquake and tsunami in Japan. Last May, Vodafone U.K. and online donation platform JustGiving launched a program that allows smaller nonprofits to set up Donation apps: In-app donations remove text-based donation campaigns for free. In less than two the extra layer of going to a website. In months, more than 8,000 charities had signed up for the the wake of the earthquake and tsunami service. in Japan, SoftBank created an app to help collect funds for disaster relief. And late last year, Oxfam International partnered with Nokia on ―Oxfam Donate,‖ an app that spotlights the charity‘s work on five projects around the world, with progress reports and fundraising levels, and an easy way to donate directly to any of them. In some markets however, such as the U.S. and U.K., Apple bans donation apps for iPhones.Image credits: justgiving.com; blog.ovi.com; penn-olson.com THINGS TO WATCH IN SOCIAL GOOD

DONATION CHANNEL INNOVATION: THINGS TO WATCH: CONTACTLESS PAYMENTS, TV DONATIONS, ATM DONATIONS Contactless Payments: As the notion of cashless societies grows closer to reality, we‘ll see innovative ideas that allow TV Donations: Nonprofits are turning Internet-enabled people to make quick electronic donations on the street. Last televisions into a channel for giving. In May, Dish Network—a year Barclays promoted its contactless technology in London satellite service in the U.S.—launched on-demand channels with a street performer who accepted only card-based such as ―Donate Storm Relief‖ and ―Donate to Japan Here,‖ donations for Help a London Child on a specially designed allowing viewers with Web-connected TVs to contribute by guitar. clicking a remote-control button. After following on-screen instructions, customers can add a $5 donation to their monthly bill. A similar technology has existed in the U.K. for over a decade. While customers currently need an Internet connection ATM Donations: This convenient to make donations, expect this kind of mechanism to become method of giving, already a familiar more popular as 4G and other untethered technologies help to practice in places including Mexico drive set-top-based giving. and Colombia, is expanding to more markets such as the U.S. and U.K.Image credits: newsroom.barclays.com; DaGoaty; Aranami THINGS TO WATCH IN SOCIAL GOOD

DONATION CHANNEL INNOVATION: THINGS TO WATCH: NEW WAYS TO COLLECT COINS Cruz Roja Mexicana, “Your Help Can Keep Us Going”: UNICEF, “Change for Haiti”: In 2010, Unicef was focused on The 2010 national fundraising drive for Cruz Roja Mexicana (the raising awareness and funds to help rebuild Haiti after its Mexican Red Cross) demonstrated that each coin can make a devastating earthquake; one big issue facing Haitians was the difference while providing the donor with a fun experience. Coin- scarcity of clean water. Unicef believed the reason people operated kiddie rides, shaped like ambulances, helicopters and often fail to donate is that they just don‘t get around to it— boats, each featuring the Red Cross logo, served as collection donating is too involved and time-consuming. So in Spain, JWT boxes. The campaign, from JWT Mexico City, helped increase Madrid created an almost effortless way to give, labeling one donations to Cruz Roja Mexicana by 23% in 2010, despite the deep button on vending machines ―Agua para Haiti‖ (Water for recession that year, and won silver and bronze Lions at the Haiti). People could press it to donate their change in a quick Cannes Lions festival. In 2011, a new iteration, ―Your Coin Saves and direct way, helping to provide Haitians with water as they Lives,‖ involved coin-operated claw machines that allowed people were purchasing their own beverage. Within the campaign‘s to ―rescue‖ a doll inside from various catastrophes. Donations first week, one in three vending customers was donating their increased 7.5% over 2010, and people learned that even their change and the campaign has since inspired imitations all over small donations could make an impact. the world.Image credits: jwt.com THINGS TO WATCH IN SOCIAL GOOD

CASE STUDIES

CASE STUDIES: BEN & JERRY‘S, FAIR TWEETSImage credit: fairtweets.com CASE STUDIES

CASE STUDIES: BRANDAID PROJECTImage credits: brandaidproect.com; macys.com CASE STUDIES

CASE STUDIES: GARNIER AND THE TIMES OF INDIA, TAKE CARE, TAKE CHARGEImage credit: takecaretakecharge.in CASE STUDIES

CASE STUDIES: MIRACLE WHIP, MIRACLE MACHINEImage credits: facebook.com/WhippingUpMiracles CASE STUDIES

CASE STUDIES: FOR-PROFIT CHAINS, NONPROFIT STORESImage credits: puroticorico; twitpic.com/67866e; treasureandbond.com CASE STUDIES

CASE STUDIES: TIDE, LOADS OF HOPEImage credits: tide.com CASE STUDIES

CASE STUDIES: HUMAN RIGHTS WATCH, ―BEHIND BARS IN BURMA‖Image credits: youtube.com/JWTNewYork; jwt.com CASE STUDIES

CASE STUDIES: TOYOTA, IDEAS FOR GOODImage credits: youtube.com/ToyotaUSA; yourideasforgood.com CASE STUDIES

THANK YOUAnn M. Mack Tony Pigott Jessica VaughnDirector of Trendspotting President and CEO, JWT Canada; Trends StrategistJWT Worldwide Global Director, EthosJWT JWTIntelligenceann.mack@jwt.com EthosJWT jessica.vaughn@jwt.com@annmmack tony.pigott@jwt.com @jess_vaughn WWW.JWT.COM | WWW.JWTINTELLIGENCE.COM | WWW.ANXIETYINDEX.COM | WWW.ETHOSJWT.COM © 2011 J. Walter Thompson Company. All Rights Reserved.

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Social Good (September 2011)

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